The wind in its sails for the prince of cryptos? – The day tomorrow promises to be lively for the price of Ethereum (ETH). Many investors are patiently waiting for the update from Shanghai. We will agree that for the past two weeks, things have been going rather well. Indeed, the neutralization of the bear run could (finally) be truly underway. However, we are at the mercy of profit-taking after the event, which, however, would not prematurely call into question the rebound since March 10.
To the extent that the prince of cryptos moves away from the alert zones, the bulls could try to drive the point home against the bears. So much so that a major resistance could soon give way. But one day before Shanghai, caution could be the watchword pending the inflation figures in the United States. Which promises us volatility.
In a market context that has regained its senses, let’s review the latest technical analyzes of the price of ETH. With the objective of knowing if he could trace his route beyond a capital and symbolic level.
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Ethereum in weekly units – The courses inside the Kumo
Driven by four weeks of increases over the last five, Ethereum price takes another step towards neutralizing its bear run since his last ATH in November 2021. Indeed, he has validated his reintegration into the Kumo (Ichimoku Cloud) to the point of now approaching $2000.
However, the road is still long for the bulls to breathe serenity. Especially since the Chikou Span remains under the cloud for a few weeks or months to come. Fortunately, we have a chart structure available in weekly units that could deter bulls. On the one hand, the courses succeeded in taking support on two distinct supports, the 1200 and 1400$. And on the other hand, the crossing of the descending line is already recorded.
Assuming that the Shanghai update goes smoothly and is accompanied by good inflation news in the United States, the prince of cryptos might not be limited to just $2000. Because less fear about the Fed’s monetary tightening would potentially send it beyond this symbolic barrier. In which case, the bulls would aim for $2,300.
Conversely, a consolidation would not be so dramatic as long as the price of ETH does not drink the cup below $1400. And when we speak, there is no point in sounding the alarm.
Ethereum in daily units – Prices still in the upper part of the bullish channel
In daily units, Ethereum is currently showing a determination not to break the Tenkan ahead of the Shanghai update. This chart situation would allow us to stay in the upper part of the bullish channel. And besides, it preserves the favorable positions of the courses and the Chikou Span compared to the Kumo. Even better, the Chikou Span has found an ideal fulcrum on the upper boundary of the bullish channel. This signal would give hope for a continuation of the rebound waiting for a catalyst which could come from the inflation figures in the United States published the following day.
The upside catch-up of Kijun against the Tenkan would eventually appear as a form of digestion of the huge rebound since March 20th. If this were to be confirmed during the next sessions, it could bode well in the perspective of the neutralization of the bear run since its last ATH in November 2021.
In this sense, a throwback on the Tenkan could steer the price of Ethereum towards $2000. A bullish extension above this resistance would bring us back to the midpoint of the last corrective wave of spring 2022. And more precisely, the prince of cryptos would return towards $2300close to 50% of the Fibonacci retracement from $3400 in April 2022 to $885 in June of the same year.
Otherwise, the breakout of the Tenkan would not be boring in itself, if the price of ETH did not break below $1700. A throwback to this recent support would provide security to build a healthy move up to break through $2000. Thus, the neutralization of the bear run would solidify to the delight of the bulls.
In summary, and despite harsh news on the financial markets, the neutralization of the Ethereum bear run since its last ATH in November 2021 is gradually following its path. The bulls will really feel confident provided that prices are well above $2000. And conversely, the bears would release ballast by buying back their short positions.
Nevertheless, the graphic obstacles remain numerous in weekly units to durably support the rebound since the $1200 at the end of last year. Cryptocurrency investors would still have to deal with a Chikou Span below the Kumo and the $2300 which would not be so easy to tame. Especially since this level was unfortunately the real starting point of the current bear run.
Inflation figures from the United States may have more influence on the evolution of the price of ETH compared to the Shanghai update. Because let’s not forget that the hot topic of the financial markets is still the Fed’s monetary policy. A good release would probably delight all risky asset classes. In which case, the prince of cryptos would give himself more chances to exceed $2000.
On the other hand, a nasty surprise that would see both headline and core inflation (excluding volatile elements such as food and energy) start again on the basis of a new upward wave, would plausibly constitute a crushing blow. This would mean that the era of QEs or printing money would seem to be over. And as a result, Ethereum (or cryptocurrencies at large) would no longer benefit from the liquidity fueled by the FED, its main catalyst having been the strength of its last bull run. The result could lead to a return to business for the bears, if the first warning zone at $1400 would yield.
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